WASHINGTON — A divided Senate on Thursday derailed Democratic legislation that would have provided $21 billion for medical, education and job-training benefits for the nation's veterans. The bill fell victim to election-year disputes over spending and fresh penalties against Iran.Each party covets the allegiance of the country's 22 million veterans and their families, and each party blamed the other for turning the effort into a chess match aimed at forcing politically embarrassing votes.Republicans used a procedural move to block the bill after Senate Veterans' Affairs Committee Chairman Bernie Sanders, I-Vt., chided GOP lawmakers about their priorities."I personally, I have to say this honestly, have a hard time understanding how anyone could vote for tax breaks for billionaires, for millionaires, for large corporations and then say we don't have the resources to protect our veterans," said Sanders, the measure's chief author.Democrats noted that more than two dozen veterans groups supported the legislation. But Republicans said they still favor helping veterans while also wanting to be prudent about federal spending."We're not going to be intimidated on this," said Sen. Jeff Sessions of Alabama, top Republican on the Senate Budget Committee. "We're going to do the right things for the veterans of America."The fight over priorities demonstrated again the bitter divisions that have restrained the legislative process in recent years. Efforts to address immigration, a tax overhaul and job creation all seem likely to go nowhere this year.Republicans criticized how most of Sanders' bill was paid for — with unspent money from the withdrawal of U.S. troops from Iraq and the winding down of American military involvement in Afghanistan. The GOP says those are not real savings because no one expected those dollars to be spent as those wars ended.Republicans also objected to provisions making more veterans without service-connected injuries eligible for treatment at Department of Veterans Affairs facilities. They said that would swamp an already overburdened system.The vote sidetracking the bill was 56-41, with supporters falling four votes short of the 60 they needed to prevail. Sens. Jerry Moran of Kansas and Dean Heller of Nevada were the only Republicans voting to keep the legislation alive and the only lawmakers crossing party lines on the vote.Veterans groups complained about being caught in partisan crossfire."Veterans don't have time for this nonsense and veterans are tired of being used as political chew toys," said Paul Rieckhoff, founder and CEO of Iraq and Afghanistan Veterans of America, which supported the legislation.Democrats wasted little time trying to cash in on the vote.Within moments, the Democratic Senatorial Campaign Committee unleashed an email headlined, "Mitch McConnell Votes Against Kentucky Veterans." McConnell is up for re-election this year.Republicans said there would be no retribution from voters because the Democratic bill would have harmed veterans' services by flooding them with too many people. They also said this year's election campaigns will focus on other issues, such as President Barack Obama's health law."We're sort of fooling ourselves to believe that this drives the election issue list," said Sen. Richard Burr of North Carolina, top Republican on the Veterans' Affairs Committee.Thursday's showdown came after Senate Majority Leader Harry Reid, D-Nev., refused to allow votes on a GOP amendment slicing the bill's size and adding the penalties against Iran for its nuclear program.Obama opposes new penalties while international negotiations with Iran proceed.Fifty-nine senators of both parties have sponsored a separate bill imposing the punishment if the talks fail, though Obama's effort has weakened Democratic calls for a quick Senate vote. A vote could put the administration and some Democrats who favor the proposal in an awkward spot.The White House did not issue a public statement on whether it supported the veterans' bill.Sanders' legislation addressed everything from making more veterans eligible for in-state college tuition to providing fertility or adoption services for some wounded troops left unable to conceive.The VA would have been given more tools to eat into its backlog of 390,000 benefit claims awaiting action for more than 125 days. The bill also would have bolstered programs for veterans who suffered sexual abuse, and would have increased dental care and provided more alternative medicine, such as yoga for stress.In a two-year test program, some overweight veterans living more than 15 minutes from a VA gym would have been given memberships at private health clubs.Benefits for some spouses of deceased veterans would have improved, and aid to relatives caring for a wounded veteran would have been expanded to include those who served before the attacks of Sept. 11, 2001.